Capital Markets Day · 2020. 3. 3. · Ceres June 2019 Hydrogenics 81% acquired for $290m October...

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Capital Markets Day

Phil Caldwell and his executive

team host a tour of Ceres’ new

manufacturing facility in Redhill

Tuesday, 12 November 2019 Ceres Power

Unit 3, Gatton Park Business Centre

Wells Place, Redhill RH1 3SL

Power for the energy transitionCONFIDENTIAL Ceres Power Ltd. © 2019 1

The contents of this presentation have not been approved by an authorised person within the meaning of Section 21 of the Financial Services and Markets Act 2000 (as amended) ("FSMA"). Reliance on the contents of this presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.

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Today’s agenda

09.45 Welcome and introductions Phil Caldwell, CEO

10.00 Establishing the global standard in SOFCThe addressable market for fuel cellsOverview of Redhill manufacturing

Mark Selby, CTOTony Cochrane, CCOJames Falla, COO

10.45 Split into Tour Groups

Tour of Manufacturing (25mins)Technology breakout (25mins)Commercial breakout (25mins)

Jim Falla, COOMark Selby, CTOTony Cochrane, CCO

12.15 Why customers partner with Ceres Bosch

12.45 Closing remarks and Q&A Phil Caldwell, CEO

13.00 Lunch and networking ALL

14.00 Finish

Power for the energy transitionCONFIDENTIAL Ceres Power Ltd. © 2019

WELCOME & INTRODUCTIONSPhil Caldwell, Chief Executive Officer


• High growth UK technology licensing company with global world-class partners

• World leading Solid Oxide fuel cell technology – Imperial College

• Unique IP ~50 Patent families + know how

• 240+ highly skilled scientists and engineers based in UK

• £71m cash and £28m order book and £50m pipeline

• AIM listed ~£320m market cap

• High-margin, capital light technology licensing business model


Objectives for the day

Tony Cochrane, CCO

Growing a global licensing business as momentumin fuel cell industry grows

Mark Selby, CTO

Establishing the industry standard and maintaining the Ceres advantage

James Falla, COO

Putting in place the building blocks to enable global adoption by the world’s largest engineering companies


Fuel cell’s role in energy transition

• Batteries & fuel cells key to Zero emissions

• Pressure on charging infrastructure

• Path to Net Zero

• Nat Gas to hydrogen

Climate ChangeAir Quality

• Cheap renewable energy disrupting centralised power generation

• Fuel cells offer flexible distributed power

• Better than centralised power

• 60 % efficiency • > Centralised CCGT

• 2x combustion engine

Energy efficiencyBalancing renewables


Over US$1bn invested by OEMs over the past 18 months

April 2019 €50m license agreement with PowerCell

July 2019 Partnership for Korean market worth $10m to Ceres

June 2019Hydrogenics 81% acquired for $290m

October 2019IPO of Doosan Fuel Cell on KSC $318m mrk cap

July 2019 Linde invests £38m into ITM Power

June 2018 Equity investment in Ceres worth £17m

December 2018Further £28m investment in Ceres

September 2018Ceres 4% equity investment worth £9m

August 2019 $163.6minvestment in Ballard

September 2019Total investment of $230m in Nikola trucks


1. Joint product developmentEngineering services

2. Licence: system/manufacturingFees for tech transfer

3. Royalties from products soldRoyalties per kW

Partnership progression


TECHNOLOGY TO ADDRESS CLIMATE CHANGEMark Selby, Chief Technology Officer

A CHANGE OF POWER

We’re a fuel cell technology and engineering company bringing cleaner and cheaper

energy to every home and business.


Electrolyte Supported

Industry leading robustness and low cost

500 600 700 800 900

Metal Supported

Anode Supported

Temperature ºC

Gen

erat

ion

1

2

3

Maturity

Stack Cost

Robustness

System Cost

●

●●●

◒◒

◔◯ ◯

◯

◯

◒


SteelCell®

12

SteelCell® product platforms

1kW

sta

ck5

kW s

tack

1 kW class home system

5 & 10 kW Commercial and

data centres

30-100s kW Hybrid EV buses

Power generation


SteelCell® is the solution for distributed generation

PEM cell SOFC cell SteelCell

Cost

Efficiency

Robustness

Fuel flexibility


Transition to a Hydrogen Future is enabled by Fuel Cell Technology

Real experimental data with OEM partner


Zero carbon future, with significant cost savings

H2

Fuel Hydrogen

Net Power 700W

Net electrical efficiency >50%

Zero emissions No CO2, SOx, NOx or PM

20406080

100

SteelGen OnNG

Fuel FlexSteelGen

H2 SteelGen

Co

st [

%]

Simplification


LICENSING MODEL & ACHIEVING SCALETony Cochrane, Chief Commercial Officer


Ceres partnerships in multiple applications globally

• 1 kW residential to 10’s to 100 kWs for businesses

• Higher efficiency than power from centralised grid

• Use as range extender for EVs in commercial vehicle markets (buses/trucks)

• Grid reinforcement for vehicle charging

Electric vehiclesDe-centralised Power

Clean power for datacentres

• Data centres use > 2 % global power

• Saves energy and CapEx

• Reliable on-site power generation

Market size 1 ~100 GW >300 GW >50 GW

Possible annual revenues for Ceres

U$360m U$400m U$270m

Rapidly growing Fuel Cell market

predicted to reach U$25bn by 2025

1 total addressable market


Ceres develops fuel cell technology that is licensed to OEMs and manufacturing partners

Ceres receives payments through engineering services and up front license fees

Ceres secures future royalties on every system and stack that uses Ceres technology

Ceres licensing business model

Product Sales

OEM Customers

System Product

ManufacturingPartners

System IP

Cell and stack IP Cell and Stack

License fee

1

1

2

2

3

3

License Fee & Engineering

License Fee

System Royalties/unit sold £/kW

Stack Royalty £/kW sold

1

2

3


• Strategic partnerships signed with Bosch and Weichai including equity investment and licensing agreements

• First product launch with Japan’s Miura Co. using Ceres’ SteelCell® in a CHP system for commercial use

• New system licence and JDA worth £8.0m over two years signed with Doosan post year end

• Strong order book of £28.4m and pipeline £50.3m (as at date of Annual Report)

Commercial progress

1

2

4

2015

2016

2017

2018

2019

Partners at JDA and Licensing

Licensing

JDA

6

6

4

2

29.8

28.4

2015

2016

2017

2018

2019

Order book and Pipeline (£m)

Order book

Pipeline

78.7

46.5

3.2

1.7

0.6


Commercial partners in every major FC market


Potential cell and stack licensee factories suppling multiple products in regions of greatest demand

Scaling the business

CHP Data Centre

HD Vehicle

LD Vehicle

Dist. Power Gen

Utility Gen.

Marine, Train

0-5kW

5-20kW

20-200kW

200-1000kW

1MW+

Existing Systems Contracts Progression into broader markets

Product applications in each region (system licenses)


OVERVIEW REDHILL MANUFACTURINGJames Falla


• £8m investment creating ~60 skilled jobs in UK

• Near term capacity for customers and “blueprint” for tech transfer to manufacturing partners

• Fit-out completed Q1 2019

• Equipment installed Q2 2019

• Site training and validation H2 2019

• Phase 1 Launch 2020 at 2MW capacity per year

UK’s first SOFC reference plant: Redhill

Located near Redhill, Surrey


UK Manufacturing enables global licensees

Phase 1 2 MW

Phase 2 3 to 10 MW

UK Technical Centre develops next generation V5, V6 & V7 SteelCell®

2018 2019 2020

High Volume Manufacturing

Potential 200MW plants

Manufacturing Licensees

Annual capacity equivalent in units:

Low volume manufacturing

Manufacturing Licensees

R&D Scale Horsham 2021

CP2 Reference plant

1kW

2,000

10,000

200,000

10kW

200

1,000

20,000

Datacentres

-

0.25

4-10

30kW

60

300

6,000

HOME WORK CLOUD ROAD


Process Overview

In House

Outsourced

Steel Substrate

Ceramic Powder

Heat Treatment

Heat Treatment

Deposition

Interconnect & Spacer

Laser Drilling

Cell Laser Welding

Stack Assembly

Ink Formulation

http://www.americanelements.com/AEoxides.html


BOSCH & CERES PARTNERSHIP

MOBILITY

IoTINTERNET OF THINGS

AND SERVICES

ENERGY

WHAT

DOES

THE FUTURE

LOOK

LIKE

?

Electrification

Automation

Connectivity

Digitalisation

Big Data

Power/Data Security

Air Quality

CO2-Reduction

Decentralisation

Confidential | M/PJ-SOFC | 2019-11-11

2019-0217_V1_CPL_Investor_conference_Kern.pptx

© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

Bosch SOFC

28

Efficiency

Scalability up to several MWel

Resilience

Profitability.

Confidential | M/PJ-SOFC | 2019-11-11

2019-0217_V1_CPL_Investor_conference_Kern.pptx

© Robert Bosch GmbH 2019. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.

SOFC – Use Cases (Selection)Various Application Opportunities Growing on Demand

Preventing overcapacities and downtimes of power stations by using a decentralized energy system

Combined Heat and PowerProviding precious electricity with 60 % AC efficiency and additional thermal power

Unlimited Scalability Being able to install plug and play solutions worldwide only requires availability of natural gas or if available Hydrogen

Cost CompetitiveTechnical benefits come with cost competitiveness to alternative solutions


SUMMARYPhil Caldwell, Chief Executive


• Market has never been more real and with tangible momentum

• Ceres highly differentiated and establishing the industry standard

• Now have all the building blocks in place to enable global adoption by the world’s largest engineering companies

31

Summary

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Capital Markets Day · 2020. 3. 3. · Ceres June 2019 Hydrogenics 81% acquired for $290m October...

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